THQ second amended Chapter 11 liquidation plan effective as of Aug. 2

By Caroline Salls

Pittsburgh, Aug. 5 - THQ Inc.'s second amended Chapter 11 plan of liquidation took effect on Aug. 2, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

The plan was confirmed on July 17.

The plan calls for the liquidation of causes of action and other remaining assets and distribution of the proceeds to creditors.

A litigation trust and stock trust will be established.

The stock trust will be vested with a single share of stock in THQ after the plan effective date, which it will hold for the benefit of the former holders of THQ stock.

The litigation trust will be vested with derivative actions.

Creditor treatment

Treatment of creditors under the plan includes the following:

• Secured tax claims and priority non-tax claims will be paid in full in cash;

• Holders of other secured claims will either be paid in full in cash, receive the proceeds from the sale of the collateral securing the claims or receive the collateral;

• Holders of convenience claims will receive cash equal to 30% multiplied by the lesser of $10,000 and the amount of the allowed claim;

• Holders of general unsecured claims will receive a share of an initial class five distribution, net proceeds after the initial distribution and a litigation trust beneficial interest;

• Holders of subordinated claims will receive the surplus if general unsecured claims are paid in full but will likely receive no distribution; and

• Holders of equity interests and securities law claims will receive the surplus if subordinated claims are paid in full but will likely receive no distribution.

THQ, a developer and publisher of video games based in Agoura Hills, Calif., filed for bankruptcy on Dec. 19, 2012. Its Chapter 11 case number is 12-13398.

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